Depending on the tree, freshly cut wood can have anywhere from 1:3 to 2:1 ratio of water to actual wood fiber.
So, unless we want to remove a massive amount of fresh water from the ecosystem, we also need to invest energy in drying out the wood well below natural humidity levels (transport to a desert maybe?) on top of electrifying what is currently a diesel and gas heavy industry (cutting and transporting logs with heavy machinery).
There's definitely lower hanging fruit for getting C02 out of the cycle.
Dumping wet wood--even very, very wet wood in a lake and sinking it to the bottom does not "remove a massive amount of fresh water from the ecosystem". It does not remove any fresh water from the ecosystem.
You can make charcoal, you even get a little bit of energy out of it or can use the wood gas as chemical feedstock. It’s still completely impractical to scale to the gigatons we’d need to sequester.